Digital Transformation in Retail: A Comprehensive RoadMap (Pre-Covid, 2019)

Retail Omnichannel Transformation
www.yicit.com | Yiğit Kalafatoğlu | 08.10.2019

Challanges
What to expect?
The rise of the mobile device penetration, integration of social media
generation to global economy and the convenience of e-commerce
processes has changed the way consumer is shopping.
They are still visiting stores but they are seeking for their digital habbits
in pyhsical venues as they never done before. In the light of this fact, if a
brand do not cater to consumer’s current needs, can not remain in the
future.
That is why «digital transformation» is a necessity for today’s business
and we are looking for answers to our questions such as how can we
keep customers visiting, how can we idealise the perfect consumer
journey and expand the life-time value for every type of consumer.

Strategic Role
Transforming a retail brands infrastructure, such as culture and
technologic capabilities with a data-centric & consumer
oriented perspective to reach global retail omni-channel
standarts for delivering the desired shopping experience for
every consumer.

Index
On the following slides,
presentation will continue in two different layers.
1. Global Omni-Channel Retail Benchmarking Report.
• Defining Omni-Channel & Paradigm Shift
• Fashion Retailers Benchmark Report
2. The Digital Transformation Road Map.
• Short-Term & Long Term Objectives
• Road Map
• Strategy
• Action Plan

Global Omni-Channel Benchmarkig Report

Brick & Mortar vs Online Retailing
Retailers have long recognized that a store can have a halo
effect, but it has traditionally been thought of in marketing
terms that is; a store can raise awareness of the retailer’s
brand, just like a billboard or a TV commercial.
★ Before
How Retailers define Omni-Channel (% of participants, 2018*)
Different Customer Engagement / Transaction Methods
Customer Satisfaction in All Channels
Conversion In Any Channel With Marketing
Click & Collect Processes
Customers’ Ability To See All Orders At Once
%67
%66
%64
%49
%37
*US Omnichannel Retail Stat Pack, Krista Garcia, July 2018
**Who’s shopping where? The power of geospatial analytics in omnichannel retail, 2018
★ After
A store can do more than just raising awareness; it can drive
sales through other channels, and vice versa. A store’s e-
commerce halo can account for 20 to 40% of its economic
value.**
★ Now
There is no «store» nor «e-commerce» for customers. There
are only brands & experiences. In a category such as fashion,
43% of consumers already consider themselves to be
omnichannel shoppers; buying both online&offline.

Brick & Mortar vs Online Retailing
Today’s retail supply chains are simply not set up to handle
the demand for speed and convenience in a cost-effective way
and are already struggling because of the omni-channel
demands.
They are optimized for stores, with online often treated as
add-on, separate business. This legacy leads to poor cross-
channel coordination across channel-specific inventory pools
and fulfillment processes, causing higher out-of-stocks and
markdowns in any given channel, especially during peak
seasons.
Also, the huge proliferation of SKUs to fulfill the “endless
assortment” promise of an online channel is creating new
capacity and cost challenges, including expenses for picking
additional online orders, acquiring additional DC space, and
processing peak season demand.
★ Transforming Business Model before Digital
Evaluation of Retail Distribution Network
Source: The Future Of Retail Supply Chains, McKinsey

Converting the Conversion Funnel
Top Reasons Consumers Shop In-Store*
Enjoyment of shopping
Immediacy
Quality of product concerns
No delivery costs
Easy returns
%27
%23
%22
%11
%6
Source: *Rethinking Retail: Consumer Retail Journey
**Experience is everything. Here how to get it right. PWC, 2018
Human
service
%3
Consumers point to speed, convenience, knowledgeable help and
friendly service as the most important elements of a positive
customer experience.
More than 40% of respondents in PwC’s Global Consumer Insights
Survey say they would pay extra for same-day delivery.**
79% of consumers say being able to engage with knowledgeable store
associates is “important” or “very important.”
63% of consumers are interested in personelized recommendations
from retailers & say they’d share more information with a company
that offers a great experience.
“Consumers are willing to share data with brands if they feel that the
outcome will be a better product or experience. What’s most important
is that brands first understand precisely what kind of information they
need to deliver these consumer expectations and then be sure to let
the community know that their feedback is furthering the evolution of
the brand.”
★ Retailers Value Proposition

The Future Of Retail Market
Online vs Offline as Seperate
Cross
Channel
Experience
*Global Powers of Retailing 2018, Deloittle
**The new challange of Omnichannel Retailing, MIT & Zaragoza
Integrated Online vs. Offline Channels. +
Distruptive Technologies
Prediction
Accuracy
Optimized Process & Networks
Flexiable supply chain designs.
More value on data.
SKU
Variance
Focus Around In-House
Pick-Pack-Ship Combo
Focus Around JIT capability
and scalability
Customer
Engagement
Segmentation depending
on SKU characteristics.
Traditional Distribution
Network
Segmentation depending on retailer service
capabilities and SKU characteristics.
Expanded design of distribution network
Increase in price sensitivity
As is To be
Item delivery duration and inventory level are the
most important aspects of online retailing.**
50% of companies are implementing planning and
forecasting technologies, with an additional 32%
increase in investments by these companies in the
next year.
34% of global respondents say having the right
product in stock was key, followed by 29% who said
variety of products was most important to them.
68% of Gen Zers surveyed said a wide choice of
products was the most important factor when
choosing where to shop.
★ Highlights
*

Shifting Trends
Traditional Retail
Pure Play
E-Commerce
Home Delivery
With Showrooms
Online Shopping
with Pickup
Pickup Delivery
Fulfilment
Online
Offline
Information
Delivered
Multi-Channel
Omni-Channel
4 –> 3
A number of online players are openning showrooms, pop-up
stores and other pyhsical formats.
4 –> 1
Online players are deciding to open/sell through traditional retail.
4 –> 2
Use of dropboxes and other alternatives for pickup are evolving
4 –> 4
Online players constantly work on reinforcing their strenghts and
reducing their weaknesses vs offline retailers.
1
2
3
4
*How to win in an Omnichannel World, MIT Sloan Management Review
★ Clashes & Reconcilations
4
4
4
4
3
1
2
4
*

The New Terminology
UNIFIED COMMERCE
Online Offline
Website
Social
Product
Page
Cart
Check-Out
Follow-Up Clientelling
Cash Wrap
Fitting
Room
Visual
Merch
Entry Way
Channel Agnostic
Device
Agnostic
★ Retailers Value Proposition
Omni-Channel shoppers create 27% of sales, in U.S*
Average annual spend of omni-channel customers are
twice than store only customers.
The current retail landscape is defined by disruption.
Legacy retailers are competing for market and
mindshare with direct-to-consumer startups and
brands and ecommerce marketplaces.
Consumers now have more choices than ever to fulfill
every need, which is accelerating their expectations
around the shopping experience. In this face of this
rapid change, every retail business must excel in
number of core areas to keep pace - personalization,
staffing, supply chain and cross-channel experience.
Foundational to each of these, is the ability to leverage
data-rich intelligence and ensure these insights are
distributed across all levels of the organization.
*How to win in an Omnichannel World, MIT Sloan Management Review

How do the global retailers do?
As we are planning the digital transformation journey,
we need to tread successful brand’s footsteps.
Due to this fact; we ran a benchmark analysis to:
• Keep the pulse of the contemporary retail trends.
• Define the brands current standings.
• Transfer experiences.
• See common attributes of brands.
• Explore our own learnings.
• Debate on workshops.

Methodology
In this research; more than 40 fashion retailers around the world had
been evaluated and a selected number of 17 brand’s key features are
highlighted.
Criterieas in terms of being a «Successful Omni-Channel Retailer»
are defined as:
• Buy online, pick up in-store
• Return products across channels
• Search in-store products online
• New Technologies in-store
• Loyalty points earned/redeemed across channels
• Three or more channels available for customer service
• And pricing consistency across channels

Zumies Inc. «All-in-One Perfection»
Zumiez Inc. is an American specialty clothing store founded by Tom Campion
and Gary Haakenson in 1978 and publicly traded since 2005.
“Offering gear and clothing for the skater, snowboarder, and surfer,” Zumiez
markets clothing for action sports, particularly skateboarding, snowboarding,
and motocross. Zumiez has perfection on seven topics:
• Buy online, pick up in-store
• Search in-store products online
• Shared cart
• Loyalty points earned/redeemed across channels
• Return products across channels
• Three or more channels available for customer service
• And pricing consistency across channels
Zumiez’s customers are also able to reserve/buy online and pick up
in-store same day; ship from any store to any location; and order
online from the store. *
Stores are an essential part of Zumiez’s omnichannel experience.
* https://resource-center.crowdtwist.com/blog/how-zumiez-drives-loyalty-with-a-powerful-omnichannel-experience
★ Key-take-aways from Zumiez’s:*

J.C. Penny «All-in-one Perfection»
J. C. Penney Company, Inc. (stylized as JCPenney) is an American department
store chain with 865 locations in 49 U.S. states and Puerto Rico.
As shopping malls became more popular during the later half of the 20th
century, J. C. Penney followed the trend by relocating and developing stores to
anchor the malls.
• It allows customers to buy online and pick up in store. Any
customers can buy online first and then go to physical stores to
receive their products for further shopping as well as in-store
experience.
• It supports customer to search product online in-store. All the
process now may save time and increasingly convenient.
• Shared Cart function is available in case of customers shop via
multiple devices. The seamless shopping experience is created.
• J.C.Penny has loyalty program across channels. Obviously, it helps
the brand to boost sales and enhance customers’s engagement.
• In case customers wanted to return products, this issue will be
synchronized automatically across channels.
• And the last thing is that the consistent price of the product is
ensured helping customers have the best experience.
* https://mobileshoppingconnect.wbresearch.com/blog/jcpenney-omnichannel-strategy-through-mobile-ty-u
★ Key-take-aways from J.C. Penny*

John Lewis & Partners «Founded Click&Collect»
JThe 150 years old company, owned by its 90,000 employees, managed to
successfully transform itself over the years to keep up with constantly
changing market trends and retail preferences.
With excellence in customer service and satisfaction at the core of what the
company represents, John Lewis has been a market leader taking big
technology bets to stay ahead of the curve.
• Three strategic business objectives were set: Track, Know and
Manage. The idea was to be able to track every item from factory
to warehouse to customer and back again, if an item was
returned.
• The objective was not only to understand what customers are
buying, but to forecast demand based on what might they buy in
the future via any of the channels.
• In order to execute on the strategy, the company set up a new
EPoS system, implemented a new web platform and a new order
management system that had the ability to track orders cross-
channels. It also replaced its single channel supply chain system
with a new cross platform. As a result of those changes, in 2009
John Lewis pioneered click-and-collect purchasing option, now an
industry standard.
“We needed the ability to track every item, to know our customers and to
manage everything across all the different channels.” – CIO
* https://digital.hbs.edu/platform-rctom/submission/john-lewis-the-omni-channel-integration-leader-in-the-uk/
★ Key-take-aways from John Lewis*

Ultra Beauty «Colloborative Consumer Management + E-Commerce First»
Ulta Beauty, Inc., (formerly known as Ulta Salon, Cosmetics & Fragrance, Inc.
until January 2017), is a chain of beauty stores in the United States,
headquartered in Bolingbrook, Illinois.Ulta Beauty carries cosmetics and
skincare brands, men’s and women’s fragrances, and hair care products.
Each store is also equipped with a salon.
• Connected inventory: Ulta’s stores and e-commerce business share the same
inventory.
• Debut products online: For new products, Ulta adds them first to its e-commerce site,
then typically two weeks later brings them into stores. This provides for discovery
online, and drives them into the store, Hamm noted.
• Mobile-first mind-set: Ulta challenges itself to design the digital experience with
mobile in mind, not desktop. We build on mobile, and then adapt to other mediums,
Hamm said.
• Synced inventory: Much like other retailers, Ulta sees a significant portion of its web
traffic — both mobile and desktop — checking to see if the product they’re looking at
online is available in-store. Inventory levels are synced to enable Ulta to make stock
availability known to web visitors.
• Collaborative leadership: The various teams within the Ulta organization are
connected and constantly in communication. It’s one experience for the guest, no
matter the department, whether it is a supply chain problem, inventory problem,
merchandising problem. And it’s that collaboration between teams that helps to get
omnichannel projects green lighted, budgeted and executed.
• Shared data: Guests are at the center of Ulta and this requires shared data within the
organization to make their experiences as seamless and easy as possible. For example,
store associates are able to make product recommendations to in-store shoppers
based on data they have on the customer’s previous online behavior.
★ Key-take-aways from Ultra Beauty*
*: https://www.mytotalretail.com/article/ulta-makes-omnichannel-beautiful/
Video Link

Lululemon «Culture Beyond The Technology»
Founded in Vancouver, Canada in 1998, lululemon athletica is a technical
athletic apparel company for yoga, running, training and most other sweaty
pursuits.
The vision for their stores were to create more than a place where people
could get gear to sweat in, they created a community hub where people could
learn and discuss the physical aspects of healthy living, mindfulness and living
a life of possibility.
• Unique Inventory: They don’t really discount their clothes, they have limited
assortments in stores and everyone who is a shopper knows their size.
• DTC: Almost 30% of the sales are Direct-To-Custımer & the target is to leverage
these ratio to 50%.
• In-House Supply Chain: Lululemon fashioned the first example of what
became known as an "in-house" supply chain because their product passes
through no distributors or wholesalers. Instead, Lululemon developed a
partnership with Mas Active a premium supplier of design to delivery
activewear, based out of Sri Lanka. Through this partnership, Lululemon takes
delivery of it's product directly to stores rather than having it distributed.
• Design & Innovation Labs: There are several labs inside Lululemon which
includes 3 designers, 9 sample makers, and 5 sales people.
• Brand Culture: Besides quality products, they created a whole shopping
experience and culture revolving around the community. Stores got the
feeling of high energy, fun and inviting community. Store managers are likely
active yoga students or teachers and there are free Yoga daily in the Lululemon
stores.
★ Key-take-aways from Lululemon*
* https://www.linkedin.com/pulse/lululemon-building-omnichannel-empire-from-scratch-alex-senn
Video Link

Oasis «armed iPad forces with integrated cash registrateion»
Oasis is trading in 96 locations across 27 countries in Europe, Scandinavia,
Middle East, Mediterranean and South America with 80 stores in the UK and
Ireland.
• When you walk into one of its stores, you can find sales
associates armed with iPads that are available to give you on-the-
spot, accurate, and up-to-date product information.
• The iPad also acts as a cash register, making it easy for associates
to ring you up from anywhere in the store.
• If it appears that something is out of stock, the staff can instantly
place an online order for you to have the item shipped directly to
your home.
• Shoppers can download Oasis' app to supplement its in-store
(or online) shopping experiences, too.
* https://blog.hubspot.com/service/omni-channel-experience
★ Key-take-aways from Oasis*

Timberland «Integration of Recommendation Engine with NFC TouchWalls»
Timberland LLC is an American manufacturer and retailer of outdoors wear,
with a focus on footwear. It is owned by VF Corporation.
Timberland footwear is marketed towards people intending outdoor use. The
company also sells apparel, such as clothes, watches, glasses, sunglasses and
leather goods. • Outdoors retailer Timberland is using near-field communication
(NFC) technology to merge the physical and digital worlds of
ecommerce. The iPad also acts as a cash register, making it easy
for associates to ring you up from anywhere in the store.
• Timberland has implemented “TouchWalls” with large interfaces,
in addition to tablets that can be used around the store.
• The TouchWalls display online-only inventory, customers can also
use a tablet to tap NFC-tagged inventory, and rich product
information will instantly load on screen.
• This has the added benefit of exposure for lesser-known products,
as the product recommendation engine pulls up inventory like
women’s footwear and men’s apparel.
* https://www.shopify.com/enterprise/10-examples-of-outstanding-omnichannel-brands
★ Key-take-aways from Timberland*
Video Link

Orvis «CRM & E-Commerce Integrated Instore Sale Assistans»
Orvis is a sporting goods retailer who has won awards for its omni-channel
strategy. Currently Orvis has 69 retail stores and 10 outlets in the US, and 18
retail stores in the UK.
Their wholesale division services more than 500 independent dealers
worldwide.
• Orvis used first-party data to discover that its target audience consisted
primarily of affluent customers who were age 50 and older.
• The company understood that while this demographic hasn’t fully adopted
digital technology yet, they have shown a genuine interest in using modern
ecommerce tools.
• So to help, Orvis gave their employees tablets that had CRM and
ecommerce tools pre-installed. These tools can order out-of-stock products
to the store as well as charge customers for both online and in-store
purchases.
• If customers need assistance with a product, they can find a rep and use their
tablet to learn more about an offer.
• Orvis’s marketing team also benefits from the information they gather from
customers.
• The CRM tools on the tablet record customer information so that employees
can recognize loyal customers when they walk into a store.
• Employees record their shopping habits and purchase history, giving more
insights to their marketing teams who are looking to deliver a more effective
offer.
* https://www.retailsupplychaininsights.com/doc/omni-channel-retailing-irt-retailer-innovation-awards-0001
★ Key-take-aways from Orvis*

Designer Shoe Warehouse «In-store Mobile App. with Strong Loyalty Features»
DWS is an American footwear retailer of designer and name brand shoes and
fashion accessories with over 500 stores in the United States and an e-
commerce website.
• New endless aisle technology that gives shoppers an easier and
faster way to shop additional colors, styles and extended sizes
via mobile devices and digital displays.
• Using a new in-store mobile application, customers can view
redeemable Rewards certificates, wish lists and personalized
offers, as well as check out quickly at any point within the store.
• In other developments, DSW recently upgraded its e-commerce
platform to unleash new capabilities in search and
personalization. The upgrade allows customers to find more
relevant search results on DSW.com and to experience
personalized content in the future.
• The retailer also has plans to offer the capability to buy online
pick-up in-store, which will further expand DSW’s unique brand of
shopping convenience to busy customers.
* https://www.retailitinsights.com/doc/dsw-inc-provides-update-on-omni-channel-strategy-0001
★ Key-take-aways from DSW*

UGG «The RFID Interactive Display»
UGG is a registered trademark in the United States and over 130 other
countries for footwear, as well as bags, clothing, outerwear, home goods and
other products.
They sell products through physical stores, wholesale partners, e-commerce
site and mobile app.
• Shop online, pick-up in store; search products online in-store;
loyalty point (reward point); return product across channels;
customer service; pricing consistency across channels…
• It enables in-store sales associates to help customers view and
purchase products not found in stores, as well as “Magic Carpet”
RFID technology in select test stores.
• When shoppers try on shoes and step onto a carpet in front of a
large interactive display, RFID communications render product
details for the item on in-store touchscreen monitors.
• The customer can enter their phone number to receive a text
with a URL to a product page on UGG’s mobile site for easy
purchase.
* https://www.mytotalretail.com/article/ugg-earns-no-1-spot-in-list-of-top-100-omnichannel-retailers/
★ Key-take-aways from UGG*
Video Link

Urban Outfitters «Content Based Loyalty Approach»
UO is an American multinational clothing corporation headquartered in
Philadelphia, Pennsylvania. It operates in the United States, Belgium, Canada,
Denmark, France, Germany, Italy, Ireland, the Netherlands, Pakistan, Sweden,
United Kingdom and Spain.
Its inventory primarily consists of women’s and men’s fashion apparel,
footwear, beauty and accessories, activewear and gear, and housewares, as
well as music, primarily vinyl records and cassettes.
• Fresh Take on Content: The brand has built out a video streaming
channel and music series, “UO Live,” and its music-focused
Instagram channel offers exclusive releases and giveaways.
• In addition to its store and online product offerings of vinyl,
headphones and other music-related accessories, the retailer has
expanded within the category to deliver a true omnichannel
“surround sound” experience to its festival-going fanbase.
• Instagram was one of the tools that this brand used to make the
change, cleaning up the imagery and presenting higher quality
products that would appeal to an adult market.
* https://diginomica.com/four-retailers-and-reality-an-progress-report-on-fashionable-omni-channel-transformation
★ Key-take-aways from Urban Outfitters*
Video Link

Finish Line «Focusing on E-Commerce while using AR in stores.»
Finish Line is an American retail chain that sells athletic shoes and related
apparel and accessories.
The company operates 660 stores in 47 states, mostly in enclosed shopping
malls, as well as Finish Line-branded athletic shoe departments in more than
450 Macy’s stores.
• Unlike other retailers, The Finish Line pursuits different Omni
channel's approach. Instead of trying duplicate in-store
experience on mobile and online, The Finish Line stay focused to
improve its unique features on web as well as mobile experience
and then integrate those into in-store experience.
• Besides, The Finish Line also focus on matching the online and
physical store experience. They are investing mobile beacons
which can recognize customers coming or leaving stores. Plus,
customers when using this technology are also allowed to get
more information about the products for sale.
• Other important things is that The Finish Line wants to enhance
customers’ in-store experience. The integrations that allow
consumers to use their phones to preview shoes they’re trying on
in-store in front of famous landmark locations using augmented
reality.
• In-store shoppers can even post pictures to social media accounts
using the integration.
* https://blog.finishline.com/2017/12/20/finish-line-culture-technology-next-level-2017/
★ Key-take-aways from Finish Line*
Video Link

NY&C «Realtime inventory checking over Kiosks in store»
New York & Company, Inc. is a specialty retailer of women’s fashion apparel
and accessories, and the modern wear-to-work destination for women,
providing fashion that is feminine, polished, on-trend and versatile.
The Company’s proprietary branded New York & Company® merchandise is
sold through its national network of retail stores and online at
www.nyandcompany.com. The Company operates over 400 stores nationwide.
• Buy online and pick up in store
• Consistent pricing across channels
• Ability to return products across channels
• Search for in-store products online.
The strong point which distinguishes New York & Company’s from
others is in-store kiosks experience.
• Customers, who cannot find their size, can view the entire
assortment and order online or pick up from a nearby location.
• By taking an API-led approach, NY&C developed a mobile
application with real-time inventory calls and became the first in
specialty retail to have kiosks that complete end-to-end
transactions.
• NY&C was ranked #3 in a list of the top 100 omnichannel retailers.
* https://www.mulesoft.com/case-studies/api/new-york-company
★ Key-take-aways from NY&C*

Abercrombie & Fitch «Seamless Experience via Shared Cart»
Abercrombie & Fitch (A&F) is an American retailer that focuses on upscale
casual wear for young consumers, its headquarters are in New Albany, Ohio.
The company operates 1,000+ stores across all three brands. The company
operates two other offshoot brands: Abercrombie Kids & Hollister Co.
Note: Abercrombie & Fitch has announced plans to close all flagship stores
worldwide. According to Business Insider, the decision is a cost-saving move
that is also designed to reshape its business. -> More
• They allowed customers to buy online and pickup instore.
• The system is able to search in-store product online to extend
customer’s decision.
• No matter devices on which customers purchase products, cart
will be shared to make sure the seamless experience as they
shop online. It means that if a customer put some wares into cart
and then, with some any reason the buying process is interrupted.
At another time, they continue to purchase those products by
accessing from mobile, they can move to the next step without
starting again.
• Omnichannel of Abercrombie & Fitch also allows returning
products across channels.
• Customer Service is available on three or more channels.
• Must See: https://www.youtube.com/watch?v=eP4Pf1t4C7o
* https://diginomica.com/the-store-as-digital-gateway-af-prototypes-an-omni-channel-shopping-experience
★ Key-take-aways from Abercrombie & Fitch*

Foot Locker «Effective Use of Video Walls»
Foot Locker Retail, Inc. is an American sportswear and footwear retailer, with
its headquarters in Midtown Manhattan, New York City and operating in 28
countries worldwide.
To talk about the success of Foot Locker in major of running Omnichannel, it’s
essential to introduce the effort in blurring the line between online and offline
stores. Video walls are showed at physical stores which allows customers to:
• Search online product in-store
• Rotate product to have 360-degree view
• Read the review from other people who have worn it before.
Besides, the connection between the online site and physical store is
improved.
For instance, if this brand had the price break on some products,
customers can see the prices break in both 2 places.
Thus, the criteria of having consistent price is ensured.
* https://footwearnews.com/2019/business/retail/foot-locker-investor-day-2019-2023-plan-1202765777
★ Key-take-aways from Foot Locker Retail*

Neiman Marcus «Strong Use of Mobile & Memory Mirrors»
Neiman Marcus, is an American department store owned by the Neiman
Marcus Group, headquartered in Dallas, Texas. The number of its location is
about 50.
• In-store associates are equipped with tablets featuring the app and help
customers quickly find products online and offline.
• Sales associates are also encouraged to direct customers to browse through
the online and mobile stores. Customers can access these name sales
associates via text, email, phone call, or Facetime on the app.
• Neiman Marcus also has a solution for finding any item, from anywhere,
within minutes. This mobile app has introduced a new feature called
“Snap.Find.Shop”.
• The feature allows shoppers to take photos of clothing and accessories they
see at any store, and the app will find the exact or similar product on the
Neiman Marcus mobile store. The mobile app provides customers with a
smooth blend of online and brick-and-mortar services, heightening the
customer experience.
• Memory Mirror offers customers images of 360 degrees. Customers log into
the mirror and can browse outfits they previously tried on and captured in
360 degrees, eight-second videos, This try-on video can be saved to the
customer’s mobile device, emailed, and shared on social media. Shoppers can
also compare clothing options and then it helps consumers pursuit the right
thing they desire most.
http://thisisretail.com.au/blog/neiman-marcus-develops-digital-integration *
★ Key-take-aways from Neiman Marcus*
Video Link

Game Stop «Millenial Focused Gamified Loyalty Approach»
GameStop Corp., or simply referred to as GameStop, is an American video
game, consumer electronics, and wireless services retailer. The company is
headquartered in Grapevine, Texas, United States, a suburb of Dallas, and
operates around 5.000 retail stores throughout the United States, Canada,
Australia, New Zealand, and Europe.
GameStop’s omnichannel model begins with the customer.
Approximately 60% of its shoppers are millennials, who demand an
authentic and transparent experience.
Despite what people may think, millennial consumers want in-store
human interaction. But the retailer still wants to provide the easiest
shopping experience, whenever or wherever the consumer is.
Therefore, the shop offers ship-to-home; buy online, pick up in-store;
and reserve online, buy in-store—the company’s fastest-growing
channel.
On the back end, the retailer ensures that online and offline work
together and don’t compete with one another. Externally, that
relationship factor is just as important.
The company has a metric it calls “influenced revenue.” Upon
engagement with the brand, GameStop follows a shopper for three
days to see their activities and behaviors after the initial research.
GameStop monitors post engagement both in-store and online.
* https://www.globenewswire.com/news-release/2019/08/29/1908549/0/en/UPDATE-GameStop-Invites-Customers-to-Explore-New-Redesigned-Website.html
★ Key-take-aways from GameStop*

BONUS «Walmart AI Cam In-Store Application»
As we look into a 45 degree camera view, we see two types of subjects:
Customers and associates in the appliance department of a retail store.
Walmart wants to be aware of how the physical space is being interacted with,
specifically which products are driving engagement.
Some highlights to pay attention to:
1. The first couple in the left-hand aisle start by the “walking activity” down the
aisle forming a path. As they get to the end of the aisle, they start to an
“engage activity” with a specific product SKU.
2. In the other aisle, we see an associate-customer pair that are in a ”engage
activity”. Note that everyone is assigned a temporary session id and since we
don’t use biometrics; once faces are detected, they are blurred.
3. Lastly, the added complexity of a PTZ camera means we have to compensate
for the movement of the camera as we determine subject pathing and activity
detection.
* https://www.globenewswire.com/news-release/2019/08/29/1908549/0/en/UPDATE-GameStop-Invites-Customers-to-Explore-New-Redesigned-Website.html
★ Key-take-aways from Walmart*
– – – –
Associate Customer Engaging Walking Queueing Dwelling
– –
Time elapsed (in seconds):

BONUS «Dynamic Desicions with Empowered Employees»
Walmart provides associates with a mobile store device equipped with custom-
built apps that inform them of real-time information like arriving shipments, out-
of-stocks and product locations.*
The Availability app automates information about out-of-stocks and allows
associates to determine the store performance and the root of the product stock
out. The Downstock app constantly updates information about product locations.
Department store Kohl’s gives its store managers a dashboard equipped with
local consumer data, data from similar stores and machine learning analytics to
provide them with weekly tasks that can be used to improve store performance.**
Store managers can receive recommendations on merchandising appearances to
maximize sales, learn how inventory will sell based on online search data and
staffing recommendations.
H&M allow its US employees to communicate with each other and receive real-
time updates on store issues through a newsfeed-inspired interface that allows
employees to weigh in and collaborate on things like merchandise displays, sales
and store related conditions.
* https://corporate.walmart.com/newsroom/innovation/20180919/walmarts-custom-apps-are-enabling-a-workplace-refresh
** https://digiday.com/marketing/kohls-managers-real-time-customer-data/
★ Key-take-aways from Empowered Employees

2- Digital Transformation RoadMap

Our Target
What to achieve?
Short Term Objectives:
• Creating a consumer oriented marketing infrastructure.
• Improving current touch points & creating new touch points.
• Perfection & syncronization on all touch points.
• Offering real-time & personalized deals.
Long Term Objectives:
• Establishing a seamless Omni-Channel experience.
• Increasing overall customer life-time value.
• Re-Considering Brand for the Future Shopper.
• Re-Considering the Organization

MARKETING
Learnings From Benchmarks
In-Store Experiences & Technology
Human (Sales Assistance) Interaction
Dance, Music + Physical Activations
Touch Walls, Memory Mirrors, Beacons, Augmented Reality Applications
NFC technology to merge the physical and digital worlds.
Giving shoppers an easier way to shop additional colors, styles and extended sizes.
Enabling them to read the review from other people who have worn it before.
Kiosks that complete end-to-end transactions.
Activity recording over store cameras.
Seamless Shopping Experience
Mobile (APP) First Mind-Set.
Shared Cart & Data.
Connected & synced inventory across channels.
Loyalty points earned/redeemed across channels.
A whole shopping experience & culture revolving around the community.
Enabling at least three channels available for customer service.
Receiving a text SMS/Mail with a URL to purchase a unique product on demand.
Ship, Return, Deliver Anywhere
Reserve or buy online, pick up in-store same day.
Search & purchase in-store products online, ship anywhere.
Sales Assistants Perspective
Armed with iPads that had CRM and ecommerce tools pre-installed.
Employees can recognize loyal customers when they walk into a store.
Benefits from the shopping habits and purchase histories recorded before.
Enriches the CRM by providing more insights to their marketing teams
Always Up-to-date with product & marketing information. (E-Learning)
If out of stock, can instantly place an online order.
Charge customers for both online and in-store purchases.
Supply
Chain
&
Operation
HR
&
IT

More Integration
Traditional Retail
Pure Play
E-Commerce
Home Delivery
With Showrooms
Online Shopping
with Pickup
Offline Online
Fulfilment
Online
Offline
Information
Delivered
Multi-Channel
Omni-Channel
1
2
3
4
• Set up terminals in stores
• Train store associates to cross-sell online
• Fix store associate’s incentives
1 –> +
Shop online ship across
stores or to customer
1 –>
Buy online at store
1 –> 2
Ship-to-store from DC
• Differentiate DC shipping / store receiving process for
online pick-ups vs. display in store.
• Design area to hold items for pick-up
• Coordinate delivery to store with customer
4 –>
Buy online/mobile,
return in store
• Develop partial or full inventory system integration
• Define static returned products flow – static / dynamic
(e.g.; stay in store vs go back to DC)
• Design reverse logistics processes
• Define accounting metrics and KPIs
• Evaluate tax implications
• Create full inventory visibility and get inventory records
accuracy right.
• Build process to reserve and pick-up in store «online»
orders.
• All above requirements.
• Develop dynamic inventory reallocation model to
define which store to ship from.
• Build reverse logistics / inter-shop and to customer
shipping capabilities at stores.
1 –>
In-store pick-up from
shelf
Omni-Channel
Offers
1
1
1
1
2
2
2
4
3
2
4

Briefly
Marketing & IT Perspective:
1. Importance of a well-defined consumer journey.
2. Data driven loyalty improvements.
3. Benefits of experimenting quickly.
4. Personalizing the recommendations.
5. Ship, return and deliver products anywhere.
6. In-Store Experiences (RFID, NFC, Mirror, Tablests +)
7. Accsessable stock & inventory management real-time.
Operation & HR Perspective:
1. Establishing culture before technology.
2. Re-shaping the organizational scheme.
3. Investing on infrastructural improvements.
4. Training Employees
5. Creating task forces for omni-channel acceleration.
6. Aiming objectives and incentives together.

Road Map
IDENTIFICATION
UNIFICATION
SEGMENTATION
PERSONALISATION
INTEGRATION
AUTOMATION
Consumer Journey + Specifications + CLV
Data Migration + Enrichment + Single CART
RFM Scoring, Behavioural, Occasional, Regional +
CLV Increase & Evaluations & Brand New Offers
Technical & Cultural Perfection
Real Time Offers with Max. Efficiency.
MARKETING + IT + OPERATION
MARKETING + OPERATION + E-COMM + CRM
MARKETING + OPERATION + IT + HR
MARKETING + CRM + IT
PROCESS EVALUATION DEPARTMENTS
BRAND IDENTITY Research + Prototypes + PLANNING BOARD + MARKETING
MOBILE DEVELOPMENT Scenarios + Modules + Features END – TO – END ALL

The Omni-Channel HUB: Mobile
CONTENT
COMMERCE
SERVICE
LOYALTY
E-COMM
CONVERSATIONAL
COMMERCE
STORE
CASHIER
WEARABLES
AUTOMATION
CRM
SOCIAL
WEB
BLOG
1:1 OFFER
GUIDENCE
CALL
CENTER
7/24
SUPPORT
PERONALISATION
★ MOBILE HUB ★
E-COMM
STAR CARD
IN-STORE
CUSTOME
R SERVICE
CONTENT
SMART
DEVICES
CONVERSATIONAL COMMERCE
★ One Platform for All
Mobile is the key game changer on the era of digital
transfomation and it is vital for Penti to keep up with
that mindset.
Thus, we must not consider Mobile platform as an alternative
sales or service channel.
It should become a platform in which consumer can use and
benefit from both in online & offline actions.
★ Supporting Data
55% of shoppers say retail experiences are disconnected
across channels.*
Nearly 25% of consumers say that their brick and-mortar
retail channel needs the most improvement with respect to
personalization efforts.
41% of consumers say that they expect representatives in a
brand’s physical store to know what they have purchased
online, yet only 19% have experienced this.**
*Global Shopper Study. Zebra Technologies, 2018
**2017 State of Personalization Report. Segment (US)

★ One Platform For All:
• Buying online & paying in-store.
• Search in-store products online.
• Learning real-time & personalized deals.
• Get additional products information.
• Reach to suggestions with rich content.
• Watch Influencer Videos related to products.
• Connect with the new technologies in-store.
• Track the statistics of wearable products.
• Check & use loyalty points in all channels.
• Chat & get 1:1 personalised customer service
• Buy via Conversational Commerce
★ MOBILE HUB ★
E-COMM
STAR CARD
IN-STORE
CUSTOMER
SERVICE
CONTENT
SMART
DEVICES
The Omni-Channel HUB: Mobile
UNIFIED DATA
UPGRADED LOYALTY
PERFECT AUTOMATION
NEW SALE CHANNELS
NEW BRAND IDENTITY
NEW ORGANISATION

Consumer Perspective
Store E-Com Call Center
Social
Media
Loyalty
Marketing Strategy Technical Architecture
LOYALTY 2.0 PERSPECTIVE
Loyalty CRM Modelling
Journey Maps
Consumer, Customer, Users
Consumer Life Cycle Detection
RFM Identification
CDP / Single Customer Cart
Segmentations:
Behavioral, Occasional
Regional, Product, Lifestyle
Persona & Cluster
Creation
PURCHASE / LICENCE
CRM DATA WAREHOUSE
CRM SOFTWARE
Business Intelligence
INTEGRATIONS
ERP+CRM+CDP+DATALAKES
Cashier + POS
Ware House & Logistics
Inventory
CUSTOMER DATABASE UNIFICATION
E-COM
INTEGRATION
DIGITAL
MEDIA IN-STORE
PAYMENT
PERSONALIZED
OFFERS
RICH
CONTENT
MOBILE
PAYMENT
WEARABLE
INTEGRATIONS
CONVERSATIONAL
COMMERCE
LOYALTY
BENEFITS
GAMIFICATION
SERVICE LEVEL
★ MOBILE HUB + Hybris
ALWAYS ON
INTERACTION
MARKETING AUTOMATION
1:1
OFFERS

HABBITS &
BEHAVIORAL DATA
PERSONALIZED
SUGGESTIONS
UP-TO-DATE
PRODUCT
INFORMATION
Armed Sale
Assistants
INSTANT
INVENTORY
ORDERING
LOYAL CUSTOMER
DETECTION
SINGLE CART
VIEW
ENRICHING
CRM
CUSTOMER
PURCHASE HISTORY
CHARGING
CUSTOMERS AS
CASHIERS
Operational Perspective
★ AI + DATA + CDP + ERP
UNIFIED COMMERCE
Marketing Strategy Technical Architecture
StarCard CRM Modelling
Journey Maps
Consumer, Customer, Users
Consumer Life Cycle Detection
RFM Identification
Single Customer Cart
Segmentations:
Behavioral, Occasional
Regional, Product, Lifestyle
Persona & Cluster
Creation
PURCHASE / LICENCE
CRM DATA WAREHOUSE
CRM SOFTWARE
Business Intelligence
INTEGRATIONS
SAP +Hybris
Cashier + POS
Ware House & Logistics
Inventory
Store E-Com Call Center
Social
Media
Loyalty

Outputs
MARKETING AUTOMATION
BRAND IDENTITY – NEW CHANNELS
FULL DIGITAL NEW BUSINESS PROJECTS
CONTACT
PURCHASE
AUDIENCE
SHOPPER
Omni-Channel
Consumer & Operation
Experience
★ MOBILE HUB ★
E-COMM
STAR CARD
IN-STORE
CUSTOMER
SERVICE
CONTENT
SMART
DEVICES

Thank You

Digital Transformation in Retail: A Comprehensive RoadMap (Pre-Covid, 2019)

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